Farm subsidies going to well off, says Oxfam
From Britain and France to Slovakia and Denmark, the controversial Common Agricultural Policy (CAP), set up nearly 50 years ago to ensure liveable incomes for Europe’s most needy farmers, is handing out hundreds of millions of pounds a year to the most well-off.
With EU foreign ministers due to discuss subsidies in Brussels and trade negotiators from the EU, US, India and Brazil meeting in London, the charity said the “murky world” of CAP was beginning to unravel.
Research it commissioned as part of its Make Trade Fair campaign found that Prince Albert, estimated to be worth €2 billion, received €287,308 in farm payments last year.
The biggest two French recipients of farm subsidies received €1.7 million a year between them in 2004 and the top 15% of the country’s farmers, a total of around 90,000, consumed 60% of subsidies given to France, Oxfam said.
But 70% of small farmers received just 17% of the total subsidies.
A similar scenario was revealed in Ireland earlier this year when it emerged multi-millionaire Larry Goodman was receiving almost €10,000 a week in farm subsidies.
Freedom of Information documents released in August showed Mr Goodman’s company Irish Agricultural Development topped the list of Irish beneficiaries of the Single Farm Payment Scheme, receiving over half a million euro a year (€508,390) in subsidies for the foreseeable future whether or not it produces any food from its land.
Kepak Farm, part of the meat processing group owned by the Keating family, was the second biggest recipient of EU subsidies in Ireland, with entitlements of €346,118-a-year on their feed lot.
“The latest figures show that France’s argument that the CAP is used primarily to support its small farmers rings hollow,” said Jo Leadbeater, Oxfam’s Head of Advocacy.
Ms Leadbeater said Oxfam wanted CAP overhauled to support small farmers and environmentally-friendly farming, “not used to line the pockets of giant agri-businesses who dump cheap produce into poor countries.”
Responsibility to reform its “gross injustices” of the CAP fell equally on the 25 member states of the EU.
“The timing could not be more critical, the Doha trade talks are on a knife-edge and we need to see leadership from the EU,” she added.
Previous Oxfam research named the British royal family and sugar giant Tate & Lyle among the biggest CAP beneficiaries.
The issue caused a crisis at an EU summit last June when British Prime Minister Tony Blair refused to discuss giving up Britain’s EU budget rebate, worth about €3bn a year, unless French President Jacques Chirac was prepared to give up some CAP benefits.
A replay of the wrangle is expected at the next EU summit, unless there is a breakthrough beforehand.
